Central and West Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 613.49
% of GDP (2019): 4.59%
% of Regional Total Package: 1.35%
Package Per Capita in USD: 207.84
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline
01A - Short-term lending info_outline
01B - Support policies for short-term lending info_outline

No amount/estimate: Provided a few foreign exchange swap operations to assure sufficient liquidity in AMD and in foreign currency.

01C - Forex operations info_outline

(i) No amount/estimate: Provided a few foreign exchange swap operations to assure sufficient liquidity in AMD and in foreign currency. The CBA has undertaken some foreign exchange sales to limit excessive dram volatility since; (ii) the exchange rate has been allowed to adjust flexibly and has depreciated around 3% against the USD since the end of February. No balance of payment or capital control measures have been adopted.

02 - Credit creation info_outline AMD25,000,000,000 USD51,123,841
02A - Financial sector lending/funding info_outline AMD25,000,000,000 USD51,123,841

Allocate a total of AMD25 billion (over USD50 million) to co-finance loans for companies that borrow money from Armenian banks in the national currency to pay salaries, taxes, bills and purchase raw materials. This amount includes subsidy for the interests of these of loans.

02B - Support policies for long-term lending info_outline

(i) No amount/estimate: The Central Bank of Armenia (CBA) reduced the policy rate by another 25 bps to 5% on April 28. The interbank market has been active, and the central bank has easily met liquidity needs so far; (ii) June 17, The CBA further reduced the policy rate by 50 bps to 4.5%.

02C - Loan guarantees
03 - Direct long-term lending info_outline
03A - Long-term lending info_outline
03B - Forbearance
04 - Equity support info_outline
05 - Government support to income/revenue AMD30,000,000,000 USD61,348,610
05A - Health
05B - Non-health AMD30,000,000,000 USD61,348,610

(i) No amount/estimate: Subsidize the interest rates of co-financed loans for companies that borrow money from Armenian banks in the national currency to pay salaries, taxes, bills and purchase raw materials; (ii) a package of AMD30 billion (over USD60 million) for urgent social assistance for the impoverished. See Measure 9: No breakdown.

06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received AMD161,817,847,859 USD330,910,000
08A - Swaps info_outline
08B - International loans/grants AMD161,817,847,859 USD330,910,000
08B1 - Asian Development Bank AMD21,980,938,205 USD44,950,000

(i) March 22, Country Support under TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases (USD0.5 million); (ii) Nonsovereign Operations: Trade Finance Program (Additional Financing) - guarantee (USD13.91 million OCR, USD26.51 million co-financed); (iii) Nonsovereign Operations: Trade Finance Program (Additional Financing) - loan (USD7.54 million, with USD2.94 million co-financed) [update]; (iv) May 28, USD45 million from the COVID-19 Working Capital Support Project (USD20 million OCR, USD25 million co-financed); (v) July 1, Promoting Digital Finance Solutions for Inclusive Finance among Partner Financial Institutions - USD0.05 million; (vii) July 13, Addressing Health Threats in the Central, West, and East Asia Region - USD0.13 million; (viii) July 24, Due Diligence and Capacity Development of Trade Finance Program Banks - USD0.07 million; (ix) August 3, COVID-19 Emergency Response - USD2 million; (x) August 6, Distance Education for Resilience Project in Armenia - USD0.75 million.

08B2 - Other AMD139,836,909,655 USD285,960,000

(i) April 3, The World Bank allocated USD3 million to address the country’s urgent needs for equipment and supplies needed for the intensive care of people with a confirmed COVID-19 diagnosis; (ii) May 18, USD280 million in total aid immediately available after an augmentation of its Stand-By Arrangement with the IMF; (iii) As of May 26, USD2.7 million to prepare laboratory systems, activate case-finding and event-based surveillance, support technical experts for response and preparedness, bolster risk-communications, and more; (iv) August 27, USD260,000 in COVID-19 relief from Canada.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown AMD245,000,000,000 USD501,013,646

Government assistance package with a headline amount of at least AMD300 billion (over USD300 million) to mitigate the socio-economic issues related to the pandemic, although this includes a variety of direct spending, state-sponsored loans and increased investment. The key measures include (i) direct labor subsidies to micro enterprises and SMEs that retain their employees and maintain their wage; (ii) strategic support to innovative companies, although the details of this last element are not yet final.

11 - Other Economic Measures

May 14, Temporary restrictions on the export of medical masks, gloves and goggles, biohazard suits, medical robes, antiviral medicines, gauze and other medical products.

12 - Non-Economic Measures

No amount/estimate: The government declared a national state of emergency on March 16, and imposed strict containment measures, including school closures, travel bans on foreign citizens from high risk countries, and imposed fines to those who violate isolation orders during the state of emergency. As of September 11, this state of emergency has been lifted, with continuing regulations mandating the use of facial coverings in public places, strict enforcement of social distancing and hygiene protocols. [update]